How to Upsell and Cross-Sell in MSP Sales: Strategies for Growing Account Revenue

By

David Frankle

May 10, 2024

•

min read

As an MSP sales leader, maximizing revenue from your existing client accounts is critical for driving profitable growth. But with limited visibility into client needs and no clear process for identifying expansion opportunities, account revenue often stagnates. This article will explore proven strategies and best practices to unlock new revenue streams from your current book of business.

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The Need to Scale Client Accounts

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A key dependency for MSP growth is increasing monthly recurring revenue (MRR) from existing clients. As the 2023 Kaseya MSP Benchmark survey revealed, top-performing MSPs generate over 20% of total revenue from selling additional services. However, the median MSP still struggles to move the revenue dial, with fewer than 40% of clients utilizing more than 3 services.

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The inability to effectively cross-sell and upsell accounts leads to missed expansion revenue, lower lifetime value per client, and increased churn risk from dissatisfaction with limited service availability. Implementing a structured approach to mapping account needs and proactively uncovering expansion potential is crucial to overcoming these challenges.

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Strategies to Maximize Account Revenue

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1. Gain Visibility into Total Account Spend

Lacking holistic visibility across all systems and tools, many MSP sales teams have an incomplete picture of existing client spends. This limits their ability to accurately identify potential areas for account growth. By leveraging professional services automation (PSA) platforms like ConnectWise or Autotask PSA, you can aggregate financial data to determine the total contract value for each client.

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With visibility into current revenue streams across various products and services, you gain clarity on potential gaps and opportunities to cross-sell additional high-value offerings.

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2. Build an Ideal Client Profile

One key to effective upselling is understanding what your best clients look like. Analyze the common attributes and patterns across your highest lifetime value accounts—size, industry vertical, tech stack etc. Develop an “ideal client profile” encompassing both firmographic and technographic elements.

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As you assess expansion potential within existing bookings, prioritize those accounts most closely matching your ideal customer framework. Not only will these aligned accounts present the most lucrative cross-sell and upsell opportunities, they’ll also have the highest propensity to purchase.

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3. Map Your Clients’ Tech Stack

Gaining a detailed understanding of each client’s existing solutions landscape is invaluable for identifying cross-selling potential. Maintain an up-to-date record of all platforms and tools utilized by the client across categories like endpoint security, backup, remote monitoring and management (RMM) etc.

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You can leverage documentation software like IT Glue or Confluence to map client tech stacks. With visibility into current solutions and any potential gaps, you’re equipped to propose relevant additional products that complement existing infrastructure.

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4. Conduct Quarterly Business Reviews

Instead of an annual account review, schedule quarterly QBRs with strategic clients. Use this opportunity to demonstrate the value delivered, surface any emerging needs, and discuss potential areas to expand or enhance engagements.

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Develop a presentation template for consistent and compelling QBR delivery. Showcase solved tickets, critical KPIs like uptime, and delightful customer success stories. Then explore expansion areas—is unstructured data putting them at risk? How could automation boost internal efficiency?

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5. Incentivize Cross-Department Referrals

Your service delivery teams often have the closest interactions with clients across projects and support issues. Empower them to identify expansion opportunities by formalizing a referral program. Offer rewards for validated referrals that drive new revenue.

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Educate techs on pitching relevant offerings during service calls and linking client needs back to appropriate sales reps. Facilitate seamless hand-offs between departments to nurture referrals into closed business.

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6. Create Service Bundles and Packages

Instead of selling disparate point solutions, make it easier for clients to purchase by creating bundled offerings around common needs. For example, an “Enhanced Security Package” could bundle endpoint detection and response, multi-factor authentication, dark web monitoring and security awareness training.

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Pre-defined bundles allow you to sell a complete solution while leveraging established value propositions. And packaged pricing models are inherently easier for clients to understand and secure budget for vs. individual products.

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7. Offer Free Trials for High-Value Modules

Many MSPs struggle to convey the benefits of new solutions since clients lack visibility into how it will address their unique needs. Offering free but limited trials allows clients to evaluate modules and experience the value first-hand.

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For example, provide access to your RMM's network topology mapping functionality for one month. The power of self-directed discovery will make the capabilities tangible. Extended

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On top of these strategic initiatives, technology can accelerate the efficiency and productivity of your sales engine. Nayak's AI-powered platform is purpose-built to help MSPs maximize revenue growth from existing bookings in a scalable, predictable way.

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By combining real-time call guidance, conversation intelligence, and predictive analytics, Nayak empowers your team to:

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- Uncover the most lucrative upsell and cross-sell opportunities across your client base

- Understand exactly which products align with each account's needs and infrastructure

- Deliver truly consultative discussions that educate clients and create appetite

- Confidently articulate technical concepts and value propositions

- Maintain persistent visibility into client sentiment and forecast expansion potential

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Book a demo today to learn more about how Nayak helps forward-thinking MSPs unlock expansionary revenue streams while fostering delighted, loyal customers for the long haul.

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